Japanese manufacturers and other firms diversifying, seeking to relocate to PHL market

The number of Japanese businesses in China that are heading for the exits is a reminder of its tough economic situation such as: Labor strikes, wage increase, and historical issues; these are reasons many Japanese manufacturers want to exit China and enter the Philippines. Japanese manufacturers are also moving their business to the Philippines, as part of their diversification strategy, and to lessen their dependence on China.

The plan to transfer their operations in the Philippines could be partly due to geopolitical tensions caused by maritime territorial dispute, but the major reason, he said, is the growth opportunities they see in the Philippines.

Japanese investors are upbeat on the manufacturing and financial aspects of doing business in the Philippines.

Some Japanese companies are targeting the retail sector. These are manufacturers of food and snacks and other Japanese products. On the banking side a Japanese bank, Sumitomo Mitsui Banking Corp. is opening a branch here in September. There are about 1,700 Japanese companies in the Philippines. Inquiries from about 200 Japanese manufacturers in China want to relocate here.

The following Japanese companies that have set up their bases here in the Philippines include:

Tokyo-listed bicycle parts maker Shimano Incorporated, which previously based in China, started building its first factory in the Philippines early this year.

Fuji said Japanese wristwatch maker Citizen and Mitsubishi Power Industries are some of the companies in China that are heading for the exits and move their manufacturing plants in the Philippines.

Even Korean banks would like to have a presence here, but not on a national level. The biggest foreign bank so far is Malaysia’s Maybank, which has 80 branches. Foreign bank normally targets their own nationals and will definitely stay in the country’s metropolitan areas.

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Vernon Joseph Go is a Corporate Mad Hatter passionate about learning, technology, simplified finance as well as Inclusive Businesses through Social Entre/Intrapreneurship Development by bridging purpose and profit.